This bill is currently before Parliament.
Budget, tax & economy
Eligible companies could claim a tax offsetAn amount used to reduce a tax bill. for costs linked to providing food that is fit to eat to a registered food charityAn eligible registered welfare charity or public benevolent institution..
The bill's sponsor, Dean Smith, said the offset was intended to make donating surplus food a more viable choice than throwing it away. He cited Foodbank's 2025 finding that almost 3.5 million households — about one in three — had faced food insecurity in the previous 12 months; 79% identified the cost of living as the main cause, and 70% said it was their first experience of food insecurity. He also said Australia wastes 7.6 million tonnes of food each year, at an estimated economic cost of $36.6 million, even though about 70% of the discarded food remains fit to eat.
Foodbank had already proposed a national food-waste tax incentive in 2020, with KPMG modelling and a 2023 implementation analysis shaping the approach, while food insecurity rose and millions of tonnes of edible food continued to be discarded. Reporting in 2024 and Foodbank’s 2025 figures highlighted the widening mismatch between surplus food and demand for relief, prompting Senator Dean Smith to introduce this private bill on 7 September 2026 to make eligible donations more viable through a time-limited company tax offsetAn amount used to reduce a tax bill..
No criticism is recorded in the supplied debate material. The available second-reading material is from the bill's sponsor, Dean Smith (Liberal), who argued that the measure was needed and said it had broad support.
Senator Dean Smith introduced this bill. Supportive speeches so far have come from Liberal.
Did it become law?
Not yet
Final passage
No final vote yet
The bill has not yet completed passage through Parliament.
Days since introduction
29 days
Updated 06 Oct 2026.
Meaning
Eligible companies could claim a tax offsetAn amount used to reduce a tax bill. for costs linked to providing food that is fit to eat to a registered food charityAn eligible registered welfare charity or public benevolent institution.. Covered activities include donating or selling the food, as well as providing related services. A company must meet the legal test for a constitutional corporation, obtain a receipt from the charity and claim the offset in its annual tax return.
The maximum offset would be the lower of $5 million or a share of eligible costs. The rate would be 45% for companies with annual turnover below $20 million, 40% for turnover from $20 million to below $50 million, and 30% for turnover of $50 million or more.
For companies with turnover below $20 million, the 45% offset would be refundable, meaning it would not be limited to tax owed. For other eligible companies, the offset would not be refundable, but unused amounts could be carried forward to a later tax year.
Large retailers, large wholesalers and very large retailers would be excluded. Other eligible companies could count costs such as producing, manufacturing, harvesting, buying, storing or transporting food. They could not count general overheads such as staff pay, insurance, audit, accounting, human resources, recruitment, legal services, travel, accommodation, hospitality, visas, work permits or financing. Marketing and other activities would be excluded when they were incidental to, rather than directly linked to, the food donation activities. Falls in the value of depreciating assets would also be excluded.
The offset could not cover costs already claimed for another tax deduction or offset. If the company or an associate received, or could reasonably be expected to receive, payment or another benefit as a direct or indirect result of the spending, none of the cost would qualify when that benefit equalled or exceeded the cost. If the benefit was smaller, only the amount above its value could qualify. Purchases from related or non-independent suppliers would be capped at market valueThe ordinary market price of goods or services..
A participating charity would need to be registered and either work to advance social or public welfare or be a public benevolent institution. These are the bill's legal categories for charities that provide direct relief to people in need.
The scheme would begin the day after royal assentThe formal approval after Parliament passes a bill. and apply to tax years starting on or after commencement. It would expire after 36 months unless regulations extend it; each extension would last another 36 months, and more than one extension could be made.
An independent review would have to examine whether the scheme should continue. Its report would be due to the minister at least 30 days before the end of each 36-month period, and the minister would have to table it in each house of Parliament within 15 sitting days after receiving it.
412‑5 Who is entitled to food donations tax offset A company is entitled to a *tax offset under this section (the food donations tax offset) for an *income year if: (a) the company incurs *food donations expenditure in the income year in, or in relation to, undertaking *food donations activities for a *registered food charity; and (i) the registered food charity has given the company a receipt in relation to the food donations activities undertaken for the charity; and (ii) the receipt contains the information (if any) prescribed by the regulations for the purposes of this subparagraph; anTax Laws Amendment (Incentivising Food Donations to Charitable Organisations) introduced text
412‑10 Amount of food donations tax offset The amount of the *food donations tax offset for a company and an *income year is the lower of: (a) $5 million; and (b) the amount equal to the percentage, set out in the following table, of the *food donations expenditure incurred by the company in the income year.Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) introduced text
The food donations tax offset is a refundable tax offset for an income year if the company’s aggregated turnover for the income year is less than $20 million. Otherwise, the tax offset is a non‑refundable tax offset and is subject to the tax offset carry forward rules under Division 65. The amount of the food donations tax offset for an income year is worked out as the lower of $5 million or a specified percentage of the company’s food donations expenditure for the income year. The percentage is: (a) for a company with an aggregated turnover of less than $20 million for the income year—45%;Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) introduced text
(2) Without limiting subsection (1), the following expenditure a company incurs in, or in relation to, undertaking *food donations activities for a *registered food charity is food donations expenditure of the company: (a) expenditure on the production, manufacture, harvesting or purchase of food that the company donates or sells to the charity; (b) expenditure on the storage of food that is donated or sold to the charity; (c) expenditure on the transportation of food that is donated or sold to the charity; (d) any other expenditure prescribed by the regulations for the purposes of this paTax Laws Amendment (Incentivising Food Donations to Charitable Organisations) introduced text
(4) Despite subsections (1) and (2), the expenditure a company incurs in, or in relation to, undertaking *food donations activities for a *registered food charity is not food donations expenditure of the company if: (a) when the company incurs the expenditure, the company or its *associate had received, or could reasonably be expected to receive, consideration as a direct or indirect result of the expenditure being incurred; and (b) that consideration is equal to or greater than the expenditure. (5) Despite subsections (1) and (2), if: (a) a company incurs expenditure in, or in relation toTax Laws Amendment (Incentivising Food Donations to Charitable Organisations) introduced text
registered food charity means an entity that is: (a) a *registered charity; and (b) either of the following: (i) registered under the Australian Charities and Not‑for‑profits Commission Act 2012 as the subtype of entity mentioned in column 2 of item 3 of the table in subsection 25‑5(5) of that Act (entities advancing social or public welfare); (ii) registered under the Australian Charities and Not‑for‑profits Commission Act 2012 as the subtype of entity mentioned in column 2 of item 14 of the table in subsection 25‑5(5) of that Act (public benevolent institutions).Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) introduced text
(1) Division 412 of the Income Tax Assessment Act 1997 ceases to be in force at the start of the day after: (a) the period of 36 months starting on the day that Division commences; or (b) if the period is extended by regulations made for the purposes of this paragraph—the extended period. (2) Regulations made for the purposes of paragraph (1)(b) may extend the period more than once, but each single extension must be for the period of 36 months. (3) The regulations may prescribe matters of a transitional nature (including any saving or application provisions) relating to Division 412 of theTax Laws Amendment (Incentivising Food Donations to Charitable Organisations) introduced text
412‑25 Review of operation of this Division (1) The Minister must cause independent reviews to be undertaken of the operation of this Division: (a) within the period of 36 months starting on the day this Division commences; and (b) within each successive period of 36 months. (2) The person or persons who undertake the review must: (a) without limiting subsection (1), consider as part of the review, the merits of continuing the operation of this Division; and (b) give the Minister a written report of the review no later than 30 days before the end of the period mentioned in paragraph (1)(Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) introduced text
Context
Foodbank had already proposed a national food-waste tax incentive in 2020, with KPMG modelling and a 2023 implementation analysis shaping the approach, while food insecurity rose and millions of tonnes of edible food continued to be discarded. Reporting in 2024 and Foodbank’s 2025 figures highlighted the widening mismatch between surplus food and demand for relief, prompting Senator Dean Smith to introduce this private bill on 7 September 2026 to make eligible donations more viable through a time-limited company tax offsetAn amount used to reduce a tax bill..
Foodbank proposes a national food-waste tax incentive
Foodbank’s 2020 pre-budget submission proposed a national tax incentive to reduce food waste and direct more edible surplus to people needing food relief.
Treasury ↗Foodbank reports 3.7 million homes experienced food insecurity
Foodbank’s 2023 Hunger Report recorded moderate to severe food insecurity in 3.7 million Australian homes during the previous 12 months.
Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) explanatory memorandum ↗Foodbank links food waste with rising demand for food relief
Foodbank said millions of tonnes of food were being wasted while the need for food relief had doubled, strengthening calls for a tax incentive to support surplus donations.
ABC News ↗Foodbank reports almost 3.5 million households faced food insecurity
Foodbank reported that almost one in three households experienced food insecurity in the previous year, with 79% identifying cost-of-living pressures as the main cause.
Tax Laws Amendment (Incentivising Food Donations to Charitable Organisations) explanatory memorandum ↗Senator Dean Smith introduces the private bill
Senator Dean Smith introduced the bill in the Senate, proposing a time-limited company tax offsetAn amount used to reduce a tax bill. for eligible food-donation costs.
Hansard ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Key criticism
No criticism is recorded in the supplied debate material. The available second-reading material is from the bill's sponsor, Dean Smith (Liberal), who argued that the measure was needed and said it had broad support.
Smith said Foodbank Australia had endorsements from other major food-relief services and 58 food producers, industry groups, charities and companies. The evidence pack contains no speech from an opposing or independent speaker, so it does not establish what objections others may have.
Further sources
Votes
No recorded votes have been found yet for this bill.
Parliamentary debate
Start here — lead voices
Smith supports the bill as a practical way to encourage companies to donate surplus food to charities instead of discarding it, helping Australians experiencing food insecurity during the cost-of-living crisis.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“This is a simple, proactive policy, introduced on behalf of Australian households struggling with food insecurity and the food relief charities working to support them through the cost-of-living crisis.”Read the full speech in Hansard ↗
Record
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
